STOCK TITAN

Houlihan Lokey Inc Financials

HLI
Source SEC Filings (10-K/10-Q) Updated May 22, 2026 Currency USD FYE May

This page shows Houlihan Lokey Inc (HLI) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 13 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI HLI FY2025

Asset-light economics let revenue recover into outsized cash generation because routine reinvestment and balance-sheet demands stay unusually small.

By FY2025, free cash flow reached $808.9M while net income was $399.7M, a wider cash-profit gap than in the prior two years. With capital expenditures only $39.7M, the cash surge points to more favorable cash timing on top of earnings recovery, not just higher reported profit.

FY2025 revenue moved above the prior FY2022 peak, yet operating margin at 21.0% remained below FY2022's 27.0%; the rebound restored activity faster than it restored incremental profitability. That pattern suggests a cost structure tied to revenue, where compensation and other operating expenses rise quickly when business improves, so not every recovered dollar drops through at peak rates.

Capital intensity stayed low: FY2025 capital spending was just $39.7M against $808.9M of free cash flow. That helps explain how the company could return cash to shareholders and still finish the year with $971.0M in cash, making liquidity look sturdier than a simple liabilities figure would imply.

[ NOT FINANCIAL ADVICE ]

Financial Health Signals

Profitability Growth Leverage Liquidity Cash Flow Returns 59 / 100
Financial Profile 59/100

Based on FY2026 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →

Health score ≠ stock price. This rates the quality of Houlihan Lokey Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Profitability
67

Houlihan Lokey Inc has an operating margin of 20.1%, meaning the company retains $20 of operating profit per $100 of revenue. This strong profitability earns a score of 67/100, reflecting efficient cost management and pricing power. This is down from 21.0% the prior year.

Growth
62

Houlihan Lokey Inc's revenue grew 9.5% year-over-year to $2.6B, a solid pace of expansion. This earns a growth score of 62/100.

Leverage
86

Houlihan Lokey Inc carries a low D/E ratio of 0.79, meaning only $0.79 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 86/100, indicating a strong balance sheet with room for future borrowing.

Cash Flow
90

Houlihan Lokey Inc converts 26.1% of revenue into free cash flow ($681.8M). This strong cash generation earns a score of 90/100.

Returns
50

Houlihan Lokey Inc's ROE of 18.2% shows moderate profitability relative to equity, earning a score of 50/100. This is down from 18.4% the prior year.

Piotroski F-Score Weak
3/9

Houlihan Lokey Inc passes 3 of 9 financial strength tests. 3 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), neither operating efficiency signal passes.

Earnings Quality Cash-Backed
1.65x

For every $1 of reported earnings, Houlihan Lokey Inc generates $1.65 in operating cash flow ($704.1M OCF vs $425.7M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Key Financial Metrics

Export CSV

Earnings & Revenue

Revenue
$2.6B
YoY+9.5%
5Y CAGR+11.4%

Houlihan Lokey Inc generated $2.6B in revenue in fiscal year 2026. This represents an increase of 9.5% from the prior year.

EBITDA
$569.7M
YoY+4.9%
5Y CAGR+6.1%
10Y CAGR+15.6%

Houlihan Lokey Inc's EBITDA was $569.7M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 4.9% from the prior year.

Net Income
$425.7M
YoY+6.5%
5Y CAGR+6.4%
10Y CAGR+19.8%

Houlihan Lokey Inc reported $425.7M in net income in fiscal year 2026. This represents an increase of 6.5% from the prior year.

EPS (Diluted)
$6.22
YoY+6.9%
5Y CAGR+6.5%
10Y CAGR+18.9%

Houlihan Lokey Inc earned $6.22 per diluted share (EPS) in fiscal year 2026. This represents an increase of 6.9% from the prior year.

Cash & Balance Sheet

Free Cash Flow
$681.8M
YoY-15.7%
5Y CAGR+3.8%
10Y CAGR+76.4%

Houlihan Lokey Inc generated $681.8M in free cash flow in fiscal year 2026, representing cash available after capex. This represents a decrease of 15.7% from the prior year.

Cash & Debt
$1.2B
YoY+22.5%
5Y CAGR+7.0%
10Y CAGR+21.8%

Houlihan Lokey Inc held $1.2B in cash against $0 in long-term debt as of fiscal year 2026.

Dividends Per Share
$0.70
10Y CAGR+8.8%

Houlihan Lokey Inc paid $0.70 per share in dividends in fiscal year 2026.

Shares Outstanding
54M

Houlihan Lokey Inc had 54M shares outstanding in fiscal year 2026.

Margins & Returns

Gross Margin
22.2%
YoY-10.1pp
5Y CAGR-12.0pp

Houlihan Lokey Inc's gross margin was 22.2% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is down 10.1 percentage points from the prior year.

Operating Margin
20.1%
YoY-0.9pp
5Y CAGR-6.6pp

Houlihan Lokey Inc's operating margin was 20.1% in fiscal year 2026, reflecting core business profitability. This is down 0.9 percentage points from the prior year.

Net Margin
16.3%
YoY-0.5pp
5Y CAGR-4.2pp

Houlihan Lokey Inc's net profit margin was 16.3% in fiscal year 2026, showing the share of revenue converted to profit. This is down 0.5 percentage points from the prior year.

Return on Equity
18.2%
YoY-0.2pp
5Y CAGR-4.4pp
10Y CAGR+7.5pp

Houlihan Lokey Inc's ROE was 18.2% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is down 0.2 percentage points from the prior year.

Capital Allocation

R&D Spending
N/A
Share Buybacks
$175.4M
YoY+234.1%
5Y CAGR+11.4%

Houlihan Lokey Inc spent $175.4M on share buybacks in fiscal year 2026, returning capital to shareholders by reducing shares outstanding. This represents an increase of 234.1% from the prior year.

Capital Expenditures
$22.3M
YoY-43.8%
5Y CAGR+9.5%
10Y CAGR+9.0%

Houlihan Lokey Inc invested $22.3M in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents a decrease of 43.8% from the prior year.

HLI Income Statement

Metric Q3'26 Q2'26 Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24
Revenue $717.1M+8.7% $659.5M+8.9% $605.3M-9.2% $666.4M+5.0% $634.4M+10.3% $575.0M+11.9% $513.6M-1.3% $520.5M
Cost of Revenue N/A N/A N/A N/A N/A N/A N/A N/A
Gross Profit $230.7M+3.5% $222.8M+18.7% $187.8M-16.9% $226.0M+13.5% $199.1M+4.8% $190.0M+20.8% $157.2M-0.2% $157.5M
R&D Expenses N/A N/A N/A N/A N/A N/A N/A N/A
SG&A Expenses $441.0M+8.7% $405.6M+8.9% $372.3M-9.2% $409.9M+5.0% $390.2M+10.3% $353.6M+11.9% $315.9M+1.1% $312.3M
Operating Income $160.7M+6.2% $151.3M+68.5% $89.8M-35.9% $140.0M+2.9% $136.1M+4.2% $130.7M+37.9% $94.7M-7.7% $102.7M
Interest Expense N/A N/A N/A N/A N/A N/A N/A N/A
Income Tax $53.1M+10.0% $48.3M+9236.9% $517K-98.2% $28.3M-43.1% $49.8M+17.1% $42.5M+289.1% $10.9M-70.4% $37.0M
Net Income $116.5M+4.3% $111.8M+14.6% $97.5M-20.0% $121.9M+27.9% $95.3M+1.9% $93.5M+5.2% $88.9M+9.7% $81.1M
EPS (Diluted) $1.70+4.3% $1.63+14.8% $1.42 N/A $1.39+1.5% $1.37+5.4% $1.30 N/A

HLI Balance Sheet

Metric Q3'26 Q2'26 Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24
Total Assets $3.9B+3.8% $3.8B+7.8% $3.5B-7.9% $3.8B+9.9% $3.5B+8.2% $3.2B+9.2% $2.9B-7.2% $3.2B
Current Assets N/A N/A N/A N/A N/A N/A N/A N/A
Cash & Equivalents $1.1B+14.4% $923.6M+16.3% $793.8M-18.2% $971.0M+21.5% $799.3M+15.6% $691.4M+53.8% $449.7M-37.6% $721.2M
Inventory N/A N/A N/A N/A N/A N/A N/A N/A
Accounts Receivable $210.9M-16.0% $251.2M+15.1% $218.2M-15.2% $257.3M+54.4% $166.7M-23.9% $219.1M+13.8% $192.6M-3.5% $199.6M
Goodwill $1.3B+0.1% $1.3B-0.2% $1.3B+0.8% $1.3B+0.3% $1.3B+8.7% $1.2B+0.2% $1.2B+4.2% $1.1B
Total Liabilities $1.6B+6.2% $1.5B+15.4% $1.3B-18.5% $1.6B+17.9% $1.4B+11.1% $1.3B+12.8% $1.1B-16.5% $1.3B
Current Liabilities N/A N/A N/A N/A N/A N/A N/A N/A
Long-Term Debt N/A N/A N/A N/A N/A N/A N/A N/A
Total Equity $2.3B+2.1% $2.2B+3.2% $2.2B+0.1% $2.2B+4.5% $2.1B+6.3% $2.0B+7.0% $1.8B-0.4% $1.8B
Retained Earnings $1.6B+4.8% $1.5B+4.6% $1.4B+3.9% $1.4B+6.1% $1.3B+4.4% $1.3B+4.4% $1.2B+3.8% $1.2B

HLI Cash Flow Statement

Metric Q3'26 Q2'26 Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24
Operating Cash Flow $217.7M-33.0% $325.0M+346.9% -$131.6M-136.7% $358.4M+35.0% $265.5M-8.2% $289.2M+548.3% -$64.5M-128.6% $225.3M
Capital Expenditures $639K-71.4% $2.2M-83.0% $13.2M-8.9% $14.5M+276.1% $3.9M-63.3% $10.5M-3.5% $10.9M-11.1% $12.2M
Free Cash Flow $217.0M-32.8% $322.8M+322.9% -$144.8M-142.1% $343.9M+31.4% $261.7M-6.1% $278.7M+469.7% -$75.4M-135.4% $213.1M
Investing Cash Flow $56.4M+149.4% -$114.3M-204.2% $109.6M+203.1% -$106.3M-21.7% -$87.4M-183.0% -$30.9M+23.6% -$40.4M-175.3% -$14.7M
Financing Cash Flow -$131.4M-82.1% -$72.1M+63.3% -$196.6M-115.9% -$91.1M-143.8% -$37.4M+4.5% -$39.1M+75.8% -$161.5M-346.8% -$36.1M
Dividends Paid $40.6M-2.7% $41.8M-20.4% $52.5M+36.2% $38.5M+4.0% $37.0M-3.6% $38.4M-25.1% $51.3M+44.2% $35.6M
Share Buybacks $87.9M+195.7% $29.7M+280.5% $7.8M-85.0% $52.2M+60583.7% $86K $0-100.0% $240K $0

HLI Financial Ratios

Metric Q3'26 Q2'26 Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24
Gross Margin 32.2%-1.6pp 33.8%+2.8pp 31.0%-2.9pp 33.9%+2.5pp 31.4%-1.7pp 33.0%+2.4pp 30.6%+0.4pp 30.3%
Operating Margin 22.4%-0.5pp 22.9%+8.1pp 14.8%-6.2pp 21.0%-0.4pp 21.4%-1.3pp 22.7%+4.3pp 18.4%-1.3pp 19.7%
Net Margin 16.3%-0.7pp 17.0%+0.8pp 16.1%-2.2pp 18.3%+3.3pp 15.0%-1.3pp 16.3%-1.0pp 17.3%+1.7pp 15.6%
Return on Equity 5.1%+0.1pp 5.0%+0.5pp 4.5%-1.1pp 5.6%+1.0pp 4.6%-0.2pp 4.8%-0.1pp 4.9%+0.4pp 4.4%
Return on Assets 3.0%+0.0pp 2.9%+0.2pp 2.8%-0.4pp 3.2%+0.4pp 2.7%-0.2pp 2.9%-0.1pp 3.0%+0.5pp 2.6%
Current Ratio N/A N/A N/A N/A N/A N/A N/A N/A
Debt-to-Equity 0.72+0.0 0.69+0.1 0.62-0.1 0.76+0.1 0.67+0.0 0.64+0.0 0.61-0.1 0.73
FCF Margin 30.3%-18.7pp 48.9%+72.9pp -23.9%-75.5pp 51.6%+10.4pp 41.2%-7.2pp 48.5%+63.2pp -14.7%-55.6pp 40.9%

Similar Companies

Frequently Asked Questions

Houlihan Lokey Inc (HLI) reported $2.6B in total revenue for fiscal year 2026. This represents a 9.5% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

Houlihan Lokey Inc (HLI) revenue grew by 9.5% year-over-year, from $2.4B to $2.6B in fiscal year 2026.

Yes, Houlihan Lokey Inc (HLI) reported a net income of $425.7M in fiscal year 2026, with a net profit margin of 16.3%.

Houlihan Lokey Inc (HLI) reported diluted earnings per share of $6.22 for fiscal year 2026. This represents a 6.9% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Houlihan Lokey Inc (HLI) had EBITDA of $569.7M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.

Houlihan Lokey Inc (HLI) had a gross margin of 22.2% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.

Houlihan Lokey Inc (HLI) had an operating margin of 20.1% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.

Houlihan Lokey Inc (HLI) had a net profit margin of 16.3% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.

Yes, Houlihan Lokey Inc (HLI) paid $0.70 per share in dividends during fiscal year 2026.

Houlihan Lokey Inc (HLI) has a return on equity of 18.2% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.

Houlihan Lokey Inc (HLI) generated $681.8M in free cash flow during fiscal year 2026. This represents a -15.7% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

Houlihan Lokey Inc (HLI) generated $704.1M in operating cash flow during fiscal year 2026, representing cash generated from core business activities.

Houlihan Lokey Inc (HLI) had $4.3B in total assets as of fiscal year 2026, including both current and long-term assets.

Houlihan Lokey Inc (HLI) invested $22.3M in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.

Yes, Houlihan Lokey Inc (HLI) spent $175.4M on share buybacks during fiscal year 2026, returning capital to shareholders by reducing shares outstanding.

Houlihan Lokey Inc (HLI) had 54M shares outstanding as of fiscal year 2026.

Houlihan Lokey Inc (HLI) had a debt-to-equity ratio of 0.79 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.

Houlihan Lokey Inc (HLI) had a return on assets of 9.9% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.

Houlihan Lokey Inc (HLI) has a Piotroski F-Score of 3 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Houlihan Lokey Inc (HLI) has an earnings quality ratio of 1.65x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Houlihan Lokey Inc (HLI) scores 59 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.

Back to top